Any State-licensed insurance producer shall be eligible to become a member in the Association.
(2) Ineligibility for suspension or revocation of license
Notwithstanding paragraph (1), a State-licensed insurance producer shall not be eligible to become a member if a State insurance regulator has suspended or revoked such producer’s license in that State during the 3-year period preceding the date on which such producer applies for membership.
(3) Resumption of eligibility
Paragraph (2) shall cease to apply to any insurance producer if—
(A)the State insurance regulator renews the license of such producer in the State in which the license was suspended or revoked; or
(B)the suspension or revocation is subsequently overturned.
(b) Authority to establish membership criteria
The Association shall have the authority to establish membership criteria that—
(1)bear a reasonable relationship to the purposes for which the Association was established; and
(2)do not unfairly limit the access of smaller agencies to the Association membership.
(c) Establishment of classes and categories
(1) Classes of membership
The Association may establish separate classes of membership, with separate criteria, if the Association reasonably determines that performance of different duties requires different levels of education, training, or experience.
The Association may establish separate categories of membership for individuals and for other persons. The establishment of any such categories of membership shall be based either on the types of licensing categories that exist under State laws or on the aggregate amount of business handled by an insurance producer. No special categories of membership, and no distinct membership criteria, shall be established for members which are depository institutions or for their employees, agents, or affiliates.
(d) Membership criteria
(1) In general
The Association may establish criteria for membership which shall include standards for integrity, personal qualifications, education, training, and experience.
(2) Minimum standard
In establishing criteria under paragraph (1), the Association shall consider the highest levels of insurance producer qualifications established under the licensing laws of the States.
(e) Effect of membership
Membership in the Association shall entitle the member to licensure in each State for which the member pays the requisite fees, including licensing fees and, where applicable, bonding requirements, set by such State.
(f) Annual renewal
Membership in the Association shall be renewed on an annual basis.
(g) Continuing education
The Association shall establish, as a condition of membership, continuing education requirements which shall be comparable to or greater than the continuing education requirements under the licensing laws of a majority of the States.
(h) Suspension and revocation
The Association may—
(1)inspect and examine the records and offices of the members of the Association to determine compliance with the criteria for membership established by the Association; and
(2)suspend or revoke the membership of an insurance producer if—
(A)the producer fails to meet the applicable membership criteria of the Association; or
(B)the producer has been subject to disciplinary action pursuant to a final adjudicatory proceeding under the jurisdiction of a State insurance regulator, and the Association concludes that retention of membership in the Association would not be in the public interest.
(i) Office of consumer complaints
(1) In general
The Association shall establish an office of consumer complaints that shall—
(A)receive and investigate complaints from both consumers and State insurance regulators related to members of the Association; and
(B)recommend to the Association any disciplinary actions that the office considers appropriate, to the extent that any such recommendation is not inconsistent with State law.
(2) Records and referrals
The office of consumer complaints of the Association shall—
(A)maintain records of all complaints received in accordance with paragraph (1) and make such records available to the NAIC and to each State insurance regulator for the State of residence of the consumer who filed the complaint; and
(B)refer, when appropriate, any such complaint to any appropriate State insurance regulator.
(3) Telephone and other access
The office of consumer complaints shall maintain a toll-free telephone number for the purpose of this subsection and, as practicable, other alternative means of communication with consumers, such as an Internet home page.
The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.
The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013
An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.
Description of Change
Statutes at Large
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